Query regarding LTCG of MNC RSUs

Dear Sir,

Hope you are doing well !!

Yes, you will get capital gain exemption u/s 54F.

As per provisions of section 54F of the Income Tax Act, 1961, exemption of capital gain is available in case of transfer of long term capital assets against investment in residential house.

Net consideration has been re-invested in purchase of one residential house within a period of 1 year before the date of transfer or within a period of 2 years after the date of transfer; or

Net consideration has been re-invested in construction of one residential house in India within a period of 3 years from the date of transfer.

Hi Sai,

Yes, if the entire sale proceeds have been used to buy a residential house within 2 years , then it's exempt from capital gain taxes.

You need to properly declare it while filing your tax return.

Yes it will be exempt.

Since you are having a long term capital gain you can claim exemption by purchasing a house provided you own only one house at the time of sale of such RSU.

You can read more at: https://www.taxontips.com/tax-in-india-on-income-earned-from-rsu-vested-in-foreign-countries-and-exemption-from-such-income/

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Yes, Capital Gains will be exempt if the proceeds are invested in house.

Hello,

Yes, you would be eligible for exemption under Sec. 54F for the investment of the sale proceeds in a house property within the specified time period. For investment below the sale proceeds amount, the proportionate exemption would be available.

I hope that this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

Hello Sir,

As it is long term capital gain, you can claim exemption u/s 54F as you have invested the sales proceeds within timeframe.

To claim full exemption the entire sale receipts have to be invested.

In case entire sale receipts are not invested, the exemption is allowed proportionately.
[Exemption = Cost the new house x Capital Gains/Sale Receipts]